BuzzFeed scored an invite to the 2014 Value Investing Congress in Las Vegas, where hedge fund managers from across the country and around the world come to divulge their favorite longs and shorts, and place a few other bets in the process. Here’s the scoop on what’s hot and what’s not.
World Acceptance, a controversial lending company that has long been a short target of hedge funds, was forced to disclose an investigation by the Consumer Protection Bureau and a separate investigation of securities fraud, causing the stock to tank.
An anonymous commenter on a hedge fund message board criticized hedge fund manager Whitney Tilson’s market-moving call on a company called MagicJack yesterday. He didn’t take it well.
That’s according to long-suffering shareholder and hedge fund manager Whitney Tilson, who told BuzzFeed the teen retailer’s turnaround under its new CEO — recruited from J.Crew — will be different from the Ron Johnson–J.C. Penney situation that burned him last year.
Recent revelations about predatory lending practices at World Acceptance have led to a hedge fund exodus. One prominent hedge fund manager went so far as to call the company “bad for humanity.”
Whitney Tilson says he is shorting companies with predatory business practices of questionable legality because he believes government regulators are “back on the job.” Online education and consumer finance, watch out.
The education activist and hedge fund manager is taking a major stand against the online education and tech company by publicly shorting its stock, calling K12’s practices and academic results “dismal.” And K12’s model undermines the charter school movement in which he is deeply entrenched.
Whitney Tilson, the founder and manager of Kase Capital, peppered Delia’s management with questions about the teen retailer’s turnaround today. Tilson was looking for reassurance that Delia’s new CEO will bring some of the magic she worked on J. Crew to Delia’s.